IRVINE, Calif. (AFX) - Broadcom Corp., a maker of circuits for cable modems and servers, on Monday said it received an informal information request from the Securities and Exchange Commission regarding its stock-option grants, and disclosed it has already initiated a voluntary review of its stock options grants, in the wake of federal investigations into several companies' alleged backdating of such grants.
Late Friday, Broadcom was notified it will be receiving an informal request for information from the SEC regarding its option-granting practices. Broadcom said it intends to cooperate fully with the request.
Broadcom said it initiated its own review on May 18 into stock options granted since the company's initial public offering in 1998.
The review is ongoing and being conducted by outside legal counsel reporting to an audit committee on Broadcom's board of directors. Broadcom is also consulting with its independent registered public accounting firm, Ernst & Young LLP.
Broadcom and its executives are facing two lawsuits filed in May claiming damages sustained by the company as a result of alleged misconduct in connection with its option-granting processes.
Broadcom said it believes the suits are without merit and intends to defend them 'vigorously.'
Shares of Broadcom dropped 13 cents to $29.20 in pre-market electronic trading on the INET, after closing Friday at $29.33.
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